Bitcoin mining is how bitcoins are released to come into circulation. It works by solving a computationally difficult puzzle to discover a new block added to the blockchain and get a reward in the form of a few bitcoins. The block reward was around 50 BTC back in 2009.
Nowadays, it’s 12.5 BTC. The Bitcoin mining industry is competitive, and today can only be done profitably with the most up-to-date ASICs.
When using desktop computers, GPUs, or older models of specialized hardware, the cost of energy consumption exceeds the revenue generated.
While mining in pools remains popular in Australia, it’s certainly not easy to make it profitable, especially for people new to the industry.
Given the complexity of Bitcoin mining in Australia, this bitcoin mining Australia – Swyftx guide focuses on five things you should know about it.
1. What is the Goal of Mining?
According to Statista, almost 1 in 5 people own some cryptocurrency in Australia.
Mining has been designed to be a computationally intense process. In essence, it involves guessing and checking whether the solution to a given problem is correct. The miner who finds the solution gets awarded bitcoins in return for their computational work.
The primary purpose of mining is to ensure that all participants have a consistent view of the Bitcoin network.
2. How is Bitcoin Mining Different from Bitcoin Gambling?
While mining involves guessing, Bitcoin gambling entails betting on an outcome with odds. Gambling requires little to no computational power or knowledge, which means anyone can do it with a computer.
3. What are the Primary Factors to Consider Before Starting Bitcoin Mining in Australia?
Mining is a highly competitive venture. You need to ensure that you have the latest ASIC miner to get into it. Also, don’t forget about electricity and cooling costs since these can add up quickly during mining.
Make sure that tariffs are included when calculating your expenses related to mining. In Australia, there’s a popular rule of thumb that 1 kilowatt-hour costs 2.5 AUD.
4. How to Choose the Bitcoin Mining Hardware?
Today, most people do their due diligence before investing in Bitcoin mining hardware since it might not be profitable depending on electricity rates and mining difficulty.
However, some general rules and principles can help with making a decision, such as choosing the most efficient Bitcoin mining hardware or opting for one that’s been around for a longer time on the market.
5. How Much Should You Invest in Mining?
When talking about Bitcoin mining in Australia, it’s essential to consider how much money can be earned daily.
It is based on various factors, such as what type of hardware is used and how much Bitcoin mining difficulty currently is.
If you are an amateur in Bitcoin mining, you can use this Bitcoin mining in Australia – Swyftx guide to begin with.
Mining pools are an excellent alternative for beginners who don’t want to invest in hardware just yet. That said, unless you already have a computer with a strong GPU or ASIC miner, mining at home probably won’t be worth it in the long run.